Notes to SEFA
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant and loan activity of Southern Minnesota Initiative Foundation (the Foundation) under programs of the federal government for the year ended June 30, 2025. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Foundation, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the Foundation. There were no subrecipients for the year ended June 30, 2025.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
The SBA Microloan Program loan balance as of June 30, 2025, was $820,723.
The Foundation participates in a revolving loan fund sponsored by the U.S. Department of Commerce. The federal awards for the Economic Adjustment Assistance program are calculated based on the capital base, which includes the outstanding EDA loans as of June 30, 2025, of $1,084,928 plus required cash escrows of $336,677 plus allowable administrative costs paid out of the revolving loan fund income of $0 and the unpaid principal of all loans written off during the Foundation's fiscal year of $0.
The Foundation has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.